California’s Tenant Protection Act (AB 1482) went into effect Jan. 1, 2020, causing consternation for property management companies, landlords, and tenants in rental markets across the Golden State, especially in the densely populated San Francisco-Oakland and Los Angeles metro areas.
There are two main sections of the Tenant Protection Act: “just cause” limitations, which prohibits termination without just cause of a tenant who has lived in a rental for at least 12 months, and rent increases top out at 5 percent plus the rate of inflation or at 10 percent of the lowest price paid in the last year.
This doesn’t mean that landlords never can evict tenants nor raise the rent. Not at all. This being the law, particularly California law, there are many exceptions and exemptions.
Types of Evictions
The law sets out two kinds of evictions: “at fault” evictions and “no fault” evictions. Examples of “At fault” evictions include:
- Not paying the rent
- Criminal activities on the premises
- Refusal to allow lawful entry to the rental
Examples of “No Fault” evictions include:
- Owner move-in
- Taking the unit off the rental market
- Landlord compliance with local law or government necessitating tenant removal.
The reason for eviction must be one of those listed above.
Rent Cap Exemptions
Exemptions to the rent cap formula (5% + the rate of inflation OR 10% of lowest price or previous year), according to the California Association of Realtors, include:
- New housing, a certificate of occupancy was issued within the previous 15 years
- A duplex (a single structure divided into two housing units) and the owner occupies one unit during the tenancy
- A single-family residence whose owner is not a corporation, LLC, or REIT, among other qualifiers.
The above provides broad brush strokes to the Tenant Protection Act, which expires on Jan. 1, 2030. If you have any other questions about this Act or another real estate-related item, the next step for more answers is to call Place Tenants at 800-886-1193 or email [email protected].
